Let’s forget our personal opinions and look at the facts:
We have already seen what OVERtaxation and regulation cause here.
Anyone who lived in Quebec in the early nineties was paying around $50.00 for a carton of cigarettes, not quite as much people are paying now but close. Despite the increased taxes on tobacco and alcohol the government was actually losing revenue because this high level of taxation and regulation spawned a massive underground market for these and other products.
Otherwise law abiding citizens rebelled at what was seen as tyranny on the part of the government. In addition to lost revenue the government was forced to spend more money on enforcing what was seen as an unfair level of taxation. In 1994 the government and province of Quebec backed down and reduced the price of cigarettes by $20.00, the smuggling was estimated to have been reduced by 80 - 90%.
Our government seems to have a very short memory, at this time our Prime Minister suggested that once the smuggling networks have been dismantled the appropriate levels of taxation can be restored. Now that the appropriate levels of taxation have been restored we can expect that smuggling will again hit a new high and it has already begun. One does not have to be a rocket scientist to figurre this out.
We have several native friends who have already offered to purchase cigarettes for us as they are exempt from paying taxes. The sales on reservations across Canada have soared, not because our indiginous peoples have suddenly taken up smoking en masse but because of the black market for cigarettes is booming. Officers from Revenue Canada have been posted at stores and have been monitoring people’s purchases and the people aren’t happy. Indian Affairs has received at least one complaint and request that these officers be removed. Nobody likes to have big brother looking over their shoulder and I agree that they should boot these guys collective asses back to Ottawa or wherever they came from.
This black market doesn’t only carry tobacco and alcohol, there is a multitude of tax free products available to anyone who wishes to obtain them.
Thus ends the factual portion of my post.
I wonder how long it will take for the government to get it this time? Wait… they aren’t rocket scientists are they?
We don’t mind paying what we consider reasonable taxes and can appreciate that those tax monies go toward paying for a great number of programs. I figure that if we are going to have the same taxation level approaching that of Sweden I want the same perks and benefits too. I could have used a lengthy paid paternity leave and a free University education would save me a whole bunch of money.
The people here who smoke, drink alcohol, drive cars, wear jewellery, eat fast food, eat junk food, wear clothes, dine out, eat ice cream, drink coffee, etc. etc. etc. pay a shitload of taxes and it seems that people are saying enough is fucking enough. I heard a rumour (probably false) that the government was even thinking of levying an additional tax on fast food.
There would be open revolt on the part of the people and I am sure many would be calling for Cretien and Martin’s heads… on a pike. Some people would already would like to see that happen.